Where does the hot money flow when k12 education and training is cold

With the stricter supervision and the “double reduction” policy of the Ministry of education, the supervision of off campus training has become the focus of social attention. From the perspective of capital market, K12 training track is facing the phenomenon of financing cold. As of April 14, according to incomplete statistics from Beijing business daily, the financing of the education and training industry in 2021 exceeded 60, while the financing of K12 was only 5, less than 1 / 10 of which made the K12 discipline training, which was the largest track in the education and training industry, cool down. For institutions, how to keep the quantity in the context of embracing supervision, and how to transform and adjust the business has become the key.

K12教培遇冷 热钱流向何处

Financing in cold

According to incomplete statistics and it orange data from Beijing business daily, since the beginning of 2021, more than 60 financing events have occurred in the primary market of education and training industry, with a total financing amount of more than 12 billion yuan. Among them, most of the financing events belong to early investment, which is the financing before round a or strategic financing.

Among them, K12 track, which was most sought after by capital before, is relatively quiet. Since January, there have been only five financing events, with the financing amount of about 1.3 billion yuan, accounting for only about 10% of the total financing amount. Among them, the largest amount of financing is the e + round financing completed by spark thinking in January this year, with the investment of US $150 million led by Zhixin capital. Whether compared with the same period last year or with other tracks, in the spring of 2021, the once hot K12 track began to cool down under the ebb tide of capital fever.

The cold of K12 track is closely related to the increasingly stringent policy supervision. At a previous press conference held by the Ministry of education, LV Yugang, director of the Department of basic education of the Ministry of education, said that the supervision and governance of off campus training institutions should be included in this year’s key tasks. From the perspective of online education and offline education, advanced teaching and teacher qualification have become the focus of supervision.

It is worth mentioning that the recently issued “guidance points for kindergarten entrance preparation education” also specifically suggests that preschool children should continuously use computers, mobile phones and other electronic products for no more than 15 minutes, and should not carry out advanced teaching, aiming at rectifying the current kindergarten connection and non-conforming online training for preschool children. In terms of offline training, after the spring semester, taking Beijing as an example, offline institutions need to apply to the District Education Committee before resuming classes. As of April, there were less than 100 offline K12 training institutions in Beijing resuming classes.

“At present, strict examination and approval, supervision of fees and prepaid security are the trend of governance of off campus training institutions.” Ma Xuelei, vice president of Beijing Private Education Association, said.

New hot spots focus on three areas

Many investors said that the scene of large-scale funds entering K12 like last year is hard to copy. Some investors said that the next upsurge of investment in the field of education and training will be accompanied by another education form update and technology iteration.

A few families are happy and a few are sad. After K12 cooling down, vocational education, education informatization and quality education have won the favor of capital. According to statistics, more than 40 financing events occurred in the above fields in 2021, accounting for more than half of the financing events in the whole education and training industry. At the same time, these three plates are also the areas where the current policy orientation is favorable. From the specific business of the three major financing companies, postgraduate entrance examination training, civil servant training, children’s programming, children’s art, and providing information platform for schools or enterprises are the main directions for enterprises to explore.

After comparing the financing situation of the above-mentioned three track enterprises this year, Beijing Business Daily found that the three financing with the highest amount were: Chalk education received 390 million US dollars in round a financing, walnut programming received 200 million US dollars in round C financing, and cloud school received 190 million US dollars in round e + financing. And the financing amount of other enterprises is between several million and hundreds of millions of yuan.

In this regard, Ge Wenwei, partner of Duojing capital, said in an interview that in fact, the whole education and training market is cooling down this year. “Although we are all paying attention to education informatization, quality education, vocational education and other aspects, these tracks can’t compare with K12. Therefore, when K12, the track with the largest market share, has capital clearing or even capital away, the venture capital of the whole education industry will cool down. So it’s unlikely that there will be a huge amount of financing. “

Where is the chance to break through

Where are the opportunities for K12 as a representative of the education and training industry enterprises to break through? In fact, transformation is imminent. Ape tutor, which received a lot of financing last year, recently announced that it will change its original brand “zebra AI course” to “zebra”, and expand its subject to writing, music and other quality subjects. It is understood that at present, zebra, melon dragon enlightenment, beaver AI courses have been online art courses, to the development of quality subjects.

In addition, many people in the industry have begun to study the possibility of school enterprise cooperation and the feasibility of changing from the C-end to the b-end to keep the growth. But it’s worth noting that turning business is not easy. “Institutions can find a way out and do to B business, but they can’t think of the market as too perfect or too ideal.” Yu Jinyong, managing partner of Zhongguancun education investment, pointed out that many institutions will attack the b-end in their transformation. In fact, there are many suppliers in the original market. When they join new players and PK with old players, most of the new players are at a disadvantage. “In addition, if we provide services to schools, the funds of schools are very limited and the cycle is very long. It is not a good choice for institutions to rashly enter the market competition.” Yu Jinyong said.

Ge Wenwei also said that in the process of cooperation with public schools, the problem faced by institutions is whether the data obtained from public schools can be used reasonably and legally. “After teaching, research and cooperation with the public system, the data obtained by the institutions need to be whitewashed before they can be used, otherwise there will be suspicion of data insecurity.”

Beijing Business Daily reporter Cheng Mingjie Zhao Boyu

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